Rule change to drive up clean energy project costs in India’s top solar state

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By Sethuraman N R

(Reuters) – Renewable energy projects in Rajasthan, India’s leading solar state, are expected to become more expensive and face delays due to a recent amendment to the state’s land registration laws, industry experts said.

The Rajasthan government has made it compulsory for companies to pay stamp duty when signing an agreement for sale or leasing land for solar projects, as both types of agreements must now be registered.

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New renewable energy projects in Rajasthan would see at least 8%-10% increase in land expenses due to registration charges and stamp duties, said senior executives from four renewable energy companies who did not wish to be named due to the sensitivity of the issue.

Land expenses account for nearly one-fifth of overall project costs.

“For newer projects that are yet to be bid out and developed, companies have to

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